In this module, we'll look at the drivers of returns in private markets.

We'll look at equity returns, which will drive venture capital funds, as well as PE funds and equity asset managers in private markets.

Private markets in simple terms, refers to all assets which aren't publicly listed.

Within private markets, returns are calculated using asset values at entry and exit of the investment in the company, as well as any interim cash flows into the investment.

As in the case of growth acquisitions, in a private equity deal, or out of the investment such as rental income from real estate investments in venture capital, there are not typically any outflows, as all capital is reinvested in the business to drive growth.

This entry and exit values are shown in the capitalization tables after being agreed on by the shareholders.

There may be an asset disposal or sale within a growth company, which may result in a return to investors.

Drivers of returns are factors that influence the value of these capital inflows and outflows.